Asia Media Group Berhad Annual Report 2014
31
Management Discussion and Analysis
(Cont’d)
INDUSTRY OUTLOOK AND FUTURE PROSPECTS OF OUR GROUP
(Cont’d)
III. Prospects and future plans of our Group
(Cont’d)
The growth of DOOH transit media industry is facilitated by the price erosion of digital screens
with the average price of digital screen expected to decrease by a CAGR of approximately 2.6%
over the period from 2007 to 2014. Additionally, with the Government aggressively promoting
the upgrade of the public transport service in the country, this is expected to further boost the
growth of DOOH transit media industry with the expected increase in public transport riderships.
Combined, these provide us with significant opportunities for growth and expansion.
In the DOOH transit media industry, we are recognised as one of three major players in this
industry, along with Simfoni Maya Sdn Bhd and YTL Info Screen Sdn Bhd. There could possibly
be other smaller competitors in the industry, but these three players are the most notable ones,
providing digital media services to the three key public transportation channels with installed
digital media screens, namely RapidKL Buses, KTMB Intercity trains and express rail link to
Kuala Lumpur International Airport.
(Source: Digital-out-of-home Transit Media Industry in Malaysia dated January 2013, Frost &
Sullivan Malaysia Sdn Bhd)
We have completed the construction of five (5) transmission towers in Klang Valley and have
conducted signal coverage tests for our frequency in Klang Valley based on the existing five
(5) transmission towers. The existing five (5) transmission towers are able to provide sufficient
coverage of our Group’s broadcasting information for most of the major bus routes which are
installed with our Group’s integrated network system used for the broadcasting of contents and
advertisements in Klang Valley. However, we may set up gap fillers in Klang Valley from time to
time to stabilise our broadcast signal in poor coverage area, if any to minimise the interruption
of our broadcasting information as and when required. The Group has also completed 8 digital
radio channels setup in Klang Valley in year 2014.
We believe that our Group have a better chance to penetrate into other public transport with the
availability of our DTTB infrastructure and frequency coverage for live broadcasting in Klang
Valley. Beside Klang Valley, we also intend to expend our DTTB infrastructure and broadcasting
services in Johor Bharu and Penang.
Taking into account of the growth prospects of the DOOH transit media industry and the current
efforts undertaken by our Group, our Board is of the view that the prospects of our Group are
expected to be positive in the future.
